Re: Removing satisfied tax liens from credit reports
08-05-2012 08:29 PM
State and it is Ohio
Ohio tax liens are judgment liens and are filed with the clerk of courts. While the procedure you have mentioned will have the lien recorded as released, it won't necessarily remove it from your credit file. A released tax lien can stay on your credit file for seven years from the date it is recorded as released.
The IRS's new procedure is to have the lien withdrawn. This is separate from having it released. By having it withdrawn it is treated as if it never happened in the first place and should be removed from your credit file.
I am not aware of any states that withdraw liens.
I have an Ohio tax lien that I've been banging my head against for nearly a year now. Paid it in Mar 2007, but did not realize it had to be recorded at the courthouse until Nov 2007. Despite it being "cancelled" (according to the release) in March, it still shows as November on the CRAs. VERY frustrating, adding a random 8 months reporting. I've written a boatload of letter to various agencies, representatives, etc not understanding why I'm "sentenced to a 7 year debtor's prison term" for something I paid in full as soon as I found out about it (it was estranged husband's filing, I thought he paid it). I don't understand why the IRS can withdraw, but the states can't. Seems like it would be in their best interest to not have that anchor dragging down credit scores when the citizen paid the debt. The goal is to collect the taxes, not inflict punitive damages, right?
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